FDI, Institutional Quality, and Bribery: An Empirical Examination in China

Kum-Sik Oh and Yeon-Sik Ryu
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Kum-Sik Oh: Division of Undeclared and Exploratory Majors, Pukyong National University, Busan 48513, Korea
Yeon-Sik Ryu: School of Business Management, Hongik University, Sejong 30016, Korea

Sustainability, 2019, vol. 11, issue 15, 1-11

Abstract: This study attempts to identify the key factors inhibiting the bribery practices of multinational enterprise (MNE) subsidiaries directed at local managers in China. During the experiment, this study employs an institutional theory, identifies primary determinants on the phenomenon, and compares the main components between old versus young subsidiaries. Data were collected through a questionnaire survey and both regression and spearman rank order correlation analyses were used as statistical techniques. Through the analyses, we found that a cognitive pillar is a crucial element contributing to the inhibition of bribery practices, the enhancement of institutional quality, and the promotion of sustainable development in the emerging economy. We expect that the results will provide useful implications for MNE managers planning to invest in China and for policy makers enacting institutional environments.

Keywords: foreign direct investment; institutional theory; bribery; emerging economy; sustainability in China (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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